The United States has suspended Cignant’s ability to file new applications for permanent labor certification, the first step toward obtaining a green card.
This comes amid the Trump administration’s campaign against alleged visa fraud. According to a report by CNBC-TV18, the investigation followed whistleblower complaints about irregularities in Cgniant’s use of immigration programs.
U.S. Department of Labor Inspector General Anthony D’Esposito announced Tuesday that he has suspended applications for permanent labor certifications from Cignant and Cloudera.
“Threats to American workers will NOT be tolerated,” D’Esposito said.
Cowlant will not submit new applications for the PERM program until the U.S. Department of Labor completes its investigation into alleged fraud related to the H-1B and PERM programs, he said.
D’Esposito added that the investigation into the two companies was conducted in coordination with the White House Fraud Task Force and other officials.
“Fighting fraud is a TEAM SPORT. @Sonderling47 and I are for real. @Cgniant’s submissions to the Perm Treaty have been suspended. @DOLOIG is being sought,” D’Esposito said, referring to Keith Sonderling, the acting Labor secretary.
“Along with @WHFraudTF we are monitoring the facts, fraud and finances,” D’Esposito said. “The handcuffs are waiting.”
What is PERM?
PERM, or Program Electronic Verification Management, is the process by which U.S. employers obtain approval from the Department of Labor to sponsor foreign workers for permanent residence.
As part of this process, employers generally must demonstrate that there are no qualified and available workers in the United States for the position and that hiring a foreign worker would not adversely affect the wages or working conditions of American workers.
Once the labor certification is approved, the employer can move on to the next steps in the employment-based green card process.
Does suspension invalidate existing permits?
No, the latest suspension only applies to new PERM applications submitted by Cgniant.
This does not invalidate Cignant’s existing permits or suspend its H-1B visa program, according to the Labor Department.
Trump’s crackdown on US visas
In July, the Trump administration launched a major investigation into alleged fraud related to the H-1B and PERM work visa programs. The suspension is part of increased scrutiny of employment-based immigration programs and alleged abuses by companies that rely on foreign workers.
Founded in Chennai in 1994, Cowlant is now headquartered in Teaneck, New Jersey. As of June 30, Counceant had received approval for 3,510 H-1B visa petitions, up from 9,413 in 2020, according to U.S. Citizenship and Immigration Services (USCIS).
Last week, U.S. Citizenship and Immigration Services said it found H-1B petitions from a major information technology consulting firm that classified technology jobs at wage levels that were inconsistent with the duties and requirements of the positions.
The agency said it denied and withdrew several petitions, arguing the practice could undermine wage protections and create unfair competition for American workers.